By Sam Tobin LONDON (Reuters) -Hewlett Packard Enterprise is seeking nearly $1.8 billion from the estate of the late Mike Lynch over HP's acquisition of his British tech firm Autonomy, the U.S.
HP Pursues $1.8 Billion from Mike Lynch's Estate After Autonomy Deal
HP's Legal Battle Over Autonomy Acquisition
By Sam Tobin
Background of the Acquisition
LONDON (Reuters) -Hewlett Packard Enterprise is seeking nearly $1.8 billion from the estate of the late Mike Lynch over HP's acquisition of his British tech firm Autonomy, the U.S. technology giant's lawyers told London's High Court on Tuesday.
Details of the Lawsuit
Hewlett Packard is seeking to recoup its losses from Lynch, who died last year when his luxury yacht sank off Sicily, over its 2011 acquisition of Autonomy for $11.1 billion.
Lynch's Defense and Estate's Response
The company accused Lynch and Autonomy's former chief financial officer, Sushovan Hussain, of inflating the firm's value before the takeover. HP wrote down Autonomy's worth by $8.8 billion within a year of the purchase.
Court filings show HP is claiming $1.79 billion, including interest and after prior settlements.
Lawyers for Lynch's estate are seeking permission to appeal a 2022 ruling that found Lynch liable, also arguing the $761 million HP seeks in interest is "an excessive sum". They also said HP has filed a separate lawsuit asserting the "estate may be insolvent".
A spokesperson for Lynch's family said: "The core facts remain that HP's claim was fundamentally flawed and a wild overstatement."
LYNCH BECAME BRITAIN'S BILL GATES
HP viewed Autonomy, built on Lynch's ground-breaking research at Cambridge University, as a transformational acquisition to move it from hardware to software.
But, after the deal soured, HP brought a $5 billion lawsuit against Lynch and Hussain in 2015. The High Court ruled in HP's favour in 2022, although a judge said the company would receive "considerably less" than $5 billion.
The court ruled in June that HP suffered losses of nearly 698 million pounds – just over $1 billion at 2011 exchange rates – as it would have paid a lower price for Autonomy had it known its "true financial position".
Lynch, once hailed as Britain's answer to Bill Gates, maintained his innocence and blamed HP for failing to integrate Autonomy. He was cleared of related criminal charges in the United States in June.
Lynch, 59, died in August when his yacht sank off Sicily during a holiday to celebrate his acquittal. His 18-year-old daughter Hannah also died in the accident.
($1 = 0.7609 pounds)
(Reporting by Sam Tobin, editing by Louise Heavens)
